Slashing College Costs: A Glimpse of the Future

Although faculty members may shudder at the thought of a $10,000 degree, they should understand that Governor Perry is merely anticipating changes that are almost inevitable in higher education. When students and their parents conclude that the price of education is higher than its rewards, they will stay away, and the college “bubble” will burst. A tuition price war is the likely result, and Perry wants Texas to be ready.

The low-cost locomotive for college education has already left the station.

With tuition rising much faster than inflation, the dream of a college education is becoming more difficult to realize. We hear of graduates carrying $100,000 or more in debt and able to get only low-paying jobs. Taxpayers help through state subsidies and federal grants and loans — but given today’s economy, how long can that last?
Thus, education is going to get cheaper.

Already, online education is bringing lower-priced education. Western Governors University, for example, lets students take as many courses as they want for a flat $6,000 a year, and they can get credit by passing “competency” exams based on experience. At online StraighterLine, students can take basic college courses for $99 a month plus $39 per course and transfer the credits.

The greatest strength of U.S. higher education has always been the sheer variety of college experiences. Some students want the excitement of a Big 10 university while others prefer contemplation at St. John’s College in Maryland. And now, with low-priced options, those who skipped college (or dropped out) can get an education even with full-time jobs and families.

Some elite schools, of course, will be immune from price competition because their reputation will always draw students. But they are the exception: Most universities, not just in Texas, should prepare to offer quality education at a much lower price.